By Robert Hill
Media mogul Byron Allen has acquired a 10.7% stake in the entertainment company Starz, purchasing 1.8 million shares for $25 million.
The investment comes as Starz continues to operate independently following its separation from Lionsgate. The deal also adds to Allen’s media portfolio, which includes the Weather Channel, television networks, and streaming platforms under Allen Media Group.
Allen has previously shown interest in acquiring other major media properties, like making a bid for Paramount
when it was under Shari Redstone’s control. He expressed interest in Disney’s linear television networks after CEO Bob Iger proposed that they might no longer be central to the company’s strategy.With Allen’s decision to expand his interests into Starz, he is gaining access to a platform that has attracted a large audience. Allen acquired a 10.7% stake through his investment firm and family office, Allen Family Capital.
He is acquiring his stake from Liberty 77, led by former Treasury Secretary Steven Mnuchin, for $25 million.
As reported by Variety, Allen Family Capital said it acquired 1,803,786 common shares of Starz at a purchase price of $13.86 per common share for aggregate consideration of $25 million. The deal gives Allen a 10.7% stake in Starz’s issued and outstanding common shares.
Starz separated from Lionsgate and now operates as an independent company. This separation was a mutual decision
, as both companies wanted to become standalone businesses.This premium entertainment network initially competed with cable networks like HBO and Showtime but has shifted its focus to streaming services. Starz CEO Jeff Hirsch has a goal for the company: to pursue mergers to expand its digital strategy and help other networks.
As reported by Deadline, Starz CEO Jeff Hirsch has repeatedly signaled to Wall Street that Starz plans to actively pursue mergers and acquisitions, particularly after separating from Lionsgate. During a fall earnings call, he said the company could potentially act as a lifeline for what he described as “marooned linear networks.”
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